RADIAN GROUP INC

Previous wording

The following analysis of our financial condition and results of operations as of and for the three months ended March 31, 2025, provides information that evaluates our financial condition as of March 31, 2025, compared with December 31, 2024, and our results of operations for the three months ended March 31, 2025, compared to the same period last year.

Current wording

The following analysis of our financial condition and results of operations for the three and six months ended June 30, 2025, provides information that evaluates our financial condition as of June 30, 2025, compared with December 31, 2024, and our results of operations for the three and six months ended June 30, 2025, compared to the same periods in 2024.

Previous wording

Our Mortgage Insurance segment aggregates, manages and distributes U.S. mortgage credit risk for the benefit of mortgage lending institutions and mortgage credit investors, principally through private mortgage insurance on residential first-lien mortgage loans, and also offers other credit risk management solutions to our customers.

Current wording

Our Mortgage Insurance segment aggregates, manages and distributes U.S. mortgage credit risk for the benefit of mortgage lending institutions and mortgage credit investors, principally through private mortgage insurance on residential first-lien mortgage loans.

Previous wording

As a mortgage and real estate company, our business results are subject to seasonal fluctuations impacting mortgage and real estate markets as well as macroeconomic conditions and specific events that impact the housing, housing finance and residential real estate markets and the credit performance of our mortgage insurance portfolio. Among others, these factors may include home prices and housing supply, inflationary pressures, the interest rate environment and the risk of recession, unemployment levels, the volume of mortgage originations and the availability of credit, national and regional economic conditions, legislative and regulatory developments and other events, including macroeconomic stresses and uncertainties related to the recent actions taken by the current presidential administration and responses thereto, as well as other political and geopolitical events and global conflicts. In addition, as discussed in “Item 1A. Risk Factors” herein, the impact of the recent actions of the current presidential administration on, among other things, the macroeconomic environment and regulatory policies could exacerbate the risks and uncertainties set forth in “Item 1A. Risk Factors” in our 2024 Form 10-K and could negatively impact our businesses and financial results. See also “Management’s Discussion and Analysis of

Current wording

As a mortgage and real estate company, our business results are subject to seasonal fluctuations impacting mortgage and real estate markets as well as macroeconomic conditions and specific events that impact the housing, housing finance and residential real estate markets and the credit performance of our mortgage insurance portfolio. Among others, these factors may include home prices and housing supply, inflationary pressures, the interest rate environment and the risk of recession, unemployment levels, the volume of mortgage originations and the availability of credit, national and regional economic conditions, legislative and regulatory developments and responses thereto, as well as other events, including macroeconomic stresses and uncertainties and other political and geopolitical events and global conflicts.

Previous wording

Despite risks and uncertainties, we believe that mortgage industry fundamentals remain strong, including as a result of the improvements to the mortgage and real estate ecosystem since the great financial crisis in 2008, such as more stringent underwriting and product standards, higher-quality borrowers with strong credit profiles and strengthened mortgage loan servicing and government support to help borrowers stay in their homes. Consistent with the trends observed in recent periods, the economic and market conditions impacting our results for the first three months of 2025 remained generally favorable.

Current wording

Despite risks and uncertainties, we believe that mortgage industry fundamentals remain strong, including as a result of the improvements to the mortgage and real estate ecosystem since the great financial crisis in 2008, such as more stringent underwriting and product standards, higher-quality borrowers with strong credit profiles and strengthened mortgage loan servicing and government support to help borrowers stay in their homes. Consistent with the trends observed in recent periods, the economic and market conditions impacting our results for the three and six months ended June 30, 2025, remained generally favorable.

Previous wording

We are subject to comprehensive regulation by both federal and state regulatory authorities. For a description of significant state and federal regulations and other requirements of the GSEs that are applicable to our businesses, as well as legislative and regulatory developments affecting the housing finance industry, see “Item 1. Business—Regulation” in our 2024 Form 10-K. There were no significant regulatory developments impacting our businesses from those discussed in our 2024 Form 10-K.

Current wording

We are subject to comprehensive regulation by both federal and state regulatory authorities. For a description of significant state and federal regulations and other requirements of the GSEs that are applicable to our businesses, as well as legislative and regulatory developments affecting the housing finance industry, see “Item 1. Business—Regulation” in our 2024 Form 10-K. There were no significant regulatory developments impacting our businesses from those discussed in our 2024 Form 10-K, other than the following.

Previous wording

We wrote $9.5 billion of primary new mortgage insurance in the three months ended March 31, 2025, compared to $11.5 billion of NIW in the three months ended March 31, 2024.

Current wording

We wrote $14.3 billion and $23.8 billion of primary new mortgage insurance in the three and six months ended June 30, 2025, respectively, compared to $13.9 billion and $25.4 billion of NIW in the three and six months ended June 30, 2024, respectively, representing an increase of 3% for the three months ended June 30, 2025, and a decrease of 6% for the six months ended June 30, 2025, each as compared to the same period in 2024.

Previous wording

According to industry estimates, mortgage origination volume for home purchases, for which private mortgage insurance has a significantly higher penetration rate than for mortgage refinances and therefore typically drives our NIW, was flat for the three months ended March 31, 2025, as compared to the same period in 2024. In addition, we estimate that our market share of total private mortgage insurance volume was lower in the first quarter of 2025, compared to an elevated market share level in the first quarter of 2024. As a result of these factors, our NIW decreased by 18% for the three months ended March 31, 2025, compared to the same period in 2024.

Current wording

According to industry estimates, mortgage origination volume for home purchases, for which private mortgage insurance has a significantly higher penetration rate than for mortgage refinances and therefore typically drives our NIW, increased slightly for the three months ended June 30, 2025, as compared to the same period in 2024, contributing to the increase in NIW in the second quarter of 2025. However, a flat purchase origination market in the first quarter of 2025, combined with our lower market share of the total private mortgage insurance volume in that quarter, as compared to an elevated market share level in the first quarter of 2024, contributed to a lower NIW for the six months ended June 30, 2025, as compared to the same period in 2024.

Previous wording

Historically, there is a close correlation between interest rates and Persistency Rates. Higher interest rate environments generally decrease refinancings, which decrease the cancellation rate of our insurance and positively affect our Persistency Rates. As shown in the table below, our 12-month Persistency Rate at March 31, 2025, was relatively flat as compared to March 31, 2024.

Current wording

Historically, there is a close correlation between interest rates and Persistency Rates. Higher interest rate environments generally decrease refinancings, which decreases the cancellation rate of our insurance and positively affects our Persistency Rates. As shown in the table below, our 12-month Persistency Rate at June 30, 2025, was relatively flat as compared to June 30, 2024.

Previous wording

As of March 31, 2025, 66% of our IIF had a mortgage note interest rate of 6.0% or less, which remains below the current prevailing mortgage interest rates based on reported industry averages. If mortgage rates were to decrease, however, refinance volumes could increase, which could have a negative impact on our Persistency Rate and the size of our IIF portfolio. See “If the length of time that our mortgage insurance policies remain in force declines, it could result in a decrease in our future revenues” under “Item 1A. Risk Factors” in our 2024 Form 10-K for more information.

Current wording

As of June 30, 2025, 63% of our IIF had a mortgage note interest rate of 6.0% or less, which remains below the current prevailing mortgage interest rates based on reported industry averages. If mortgage rates were to decrease, however, refinance volumes could increase, which could have a negative impact on our Persistency Rate and the size of our IIF portfolio. See “If the length of time that our mortgage insurance policies remain in force declines, it could result in a decrease in our future revenues” under “Item 1A. Risk Factors” in our 2024 Form 10-K for more information.

Previous wording

The table below provides information about the amounts by which Radian Guaranty’s reinsurance programs reduce its Minimum Required Assets.

Current wording

The following table provides information about the amounts by which Radian Guaranty’s reinsurance programs reduce its Minimum Required Assets.

Previous wording

Radian Group serves as the holding company for our operating subsidiaries and does not have any operations of its own. Our consolidated operating results for the three months ended March 31, 2025 and 2024, primarily reflect the financial results and performance of our Mortgage Insurance business. See “Results of Operations—Mortgage Insurance” for the operating results of this business segment for the three months ended March 31, 2025, compared to the same period in 2024.

Current wording

Radian Group serves as the holding company for our operating subsidiaries and does not have any operations of its own. Our consolidated operating results for the three and six months ended June 30, 2025 and 2024, primarily reflect the financial results and performance of our Mortgage Insurance business. See “Results of Operations—Mortgage Insurance” for the operating results of this business segment for the three and six months ended June 30, 2025, compared to the same periods in 2024.

Previous wording

Net Premiums Earned. Net premiums earned increased slightly for the three months ended March 31, 2025, as compared to the same period in 2024. See “Results of Operations—Mortgage Insurance—Revenues—Net Premiums Earned” for more information.

Current wording

Net Premiums Earned. See “Results of Operations—Mortgage Insurance—Revenues—Net Premiums Earned” for more information.

Previous wording

Provision for Losses. The change in the provision for losses for the three months ended March 31, 2025, as compared to the same period in 2024, is primarily driven by a reduction in favorable development on prior period defaults, which impacted our mortgage insurance reserves. See “Results of Operations—Mortgage Insurance—Expenses—Provision for Losses” for more information.

Current wording

Provision for Losses. The change in the provision for losses for the three and six months ended June 30, 2025, as compared to the same periods in 2024, is primarily driven by a reduction in favorable development on prior period defaults, which impacted our mortgage insurance reserves. See “Results of Operations—Mortgage Insurance—Expenses—Provision for Losses” for more information.

Previous wording

Other Operating Expenses. Other operating expenses decreased for the three months ended March 31, 2025, as compared to the same period in 2024, primarily driven by the impact of expense reduction initiatives for certain of the businesses that comprise All Other activities. For additional information, see “Expenses—Other Operating Expenses” under both “Results of Operations—Mortgage Insurance” and “Results of Operations—All Other.”

Current wording

Other Operating Expenses. Other operating expenses decreased for the three and six months ended June 30, 2025, as compared to the same periods in 2024, primarily driven by the impact of expense reduction initiatives for certain of the businesses that comprise All Other activities. For additional information, see “Results of Operations—Mortgage Insurance—Expenses—Other Operating Expenses” and “Results of Operations—All Other.”

Previous wording

Interest Expense. The decrease in interest expense for the three months ended March 31, 2025, as compared to the same period in 2024, is primarily due to: (i) a decline in senior notes outstanding and (ii) the impact of a $4 million loss on extinguishment of debt related to the redemption of senior notes in March of 2024. This decrease was partially offset by an increase in secured borrowings under our mortgage loan financing facilities. See Note 12 of Notes to Unaudited Condensed Consolidated Financial Statements for additional detail about our interest expense.

Current wording

Interest Expense. The decrease in interest expense for the three and six months ended June 30, 2025, as compared to the same periods in 2024, is primarily due to a decline in senior notes outstanding. This decrease in both periods was partially offset by an increase in secured borrowings under our mortgage loan financing facilities. The six months ended June 30, 2024, also included a $4 million loss on extinguishment of debt related to the redemption of senior notes in March of 2024. See Note 12 of Notes to Unaudited Condensed Consolidated Financial Statements for additional detail about our interest expense.

Previous wording

Our provision for income taxes for interim period is established based on our estimated annual effective tax rate for a given year and reflects the impact of discrete tax effects in the period in which they occur.

Current wording

Our provision for income taxes for interim periods is established based on our estimated annual effective tax rate for a given year and reflects the impact of discrete tax effects in the period in which they occur.

Previous wording

Our effective tax rate for each of the three months ended March 31, 2025 and 2024, was 23.3%. For the three months ended March 31, 2025 and 2024, the effects of non-deductible executive compensation expense and state income taxes were the primary drivers of the difference in our effective tax rate compared to the federal statutory rate.

Current wording

Our effective tax rate for the three and six months ended June 30, 2025, was 19.0% and 21.2%, respectively, as compared to 19.3% and 21.3% for the three and six months ended June 30, 2024, respectively. For the three and six months ended June 30, 2025 and 2024, the effects of non-deductible executive compensation expense, state income taxes and the vesting of RSUs were the primary drivers of the difference in our effective tax rate compared to the federal statutory rate.

Previous wording

The non-operating item for the three months ended March 31, 2024, relates to a loss on extinguishment of debt.

Current wording

The non-operating item for the six months ended June 30, 2024, primarily relates to a loss on extinguishment of debt.

Previous wording

The table below provides additional information about the components of mortgage insurance net premiums earned for the periods indicated, including the effects of our reinsurance programs.

Current wording

Net Premiums Earned. The following tables provide additional information about the components of mortgage insurance net premiums earned for the periods indicated, including the effects of our reinsurance programs.

Previous wording

The following table provides information related to our Mortgage Insurance subsidiaries’ investment balances and investment yields for the periods indicated.

Current wording

Net Investment Income. The following table provides information related to our Mortgage Insurance subsidiaries’ investment balances and investment yields for the periods indicated.

Previous wording

Current period new primary defaults increased by 6% for the three months ended March 31, 2025, compared to the same period in 2024, as shown below, which is consistent with the natural seasoning of the portfolio given the increase in our IIF in recent years. Our gross Default to Claim Rate assumption for new primary defaults was 7.5% and 8.0% at March 31, 2025 and 2024, respectively, as we continue to closely monitor the trends in Cures and claims paid for our default inventory, while also weighing the risks and uncertainties associated with the current economic environment.

Current wording

As shown in the table below, current period new primary defaults increased by 3% and 5% for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024, which is consistent with the natural seasoning of the portfolio given the increase in our IIF in recent years. Our gross Default to Claim Rate assumption for new primary defaults was 7.5% and 8.0% at June 30, 2025 and 2024, respectively, as we continue to closely monitor the trends in Cures and claims paid for our default inventory, while also weighing the risks and uncertainties associated with the current economic environment.

Previous wording

Our provision for losses during the three months ended March 31, 2025, and the same period in 2024, was positively impacted by favorable reserve development on prior period defaults, primarily as a result of more favorable trends in Cures than originally estimated. These Cures have been due primarily to favorable outcomes resulting from positive trends in home price appreciation, which has also contributed to a higher rate of claims that result in no ultimate loss and that are withdrawn by servicers as a result. These favorable observed trends resulted in reductions in our Default to Claim Rate and other reserve adjustments for prior year default notices, including our Claim Severity assumptions in 2024.

Current wording

Our provision for losses during the three and six months ended June 30, 2025, and the same periods in 2024, was positively impacted by favorable reserve development on prior period defaults, primarily as a result of more favorable trends in Cures than originally estimated. These Cures have been due primarily to favorable outcomes resulting from positive trends in home price appreciation, which has also contributed to a higher rate of claims that result in no ultimate loss and that are withdrawn by servicers as a result. These favorable observed trends have resulted in reductions in our Default to Claim Rate and other reserve adjustments for prior year default notices, including our Claim Severity assumptions in 2024.

Previous wording

The following tables show additional information about our primary loans in default as of the dates indicated.

Current wording

The following table shows additional information about our primary loans in default as of the dates indicated.

Previous wording

We develop our Default to Claim Rate estimates based primarily on models that use a variety of loan characteristics to determine the likelihood that a default will reach claim status. Our aggregate weighted average net Default to Claim Rate assumption for our primary loans used in estimating our reserve for losses, which is net of estimated Claim Denials and Rescissions, was 24% and 23% as of March 31, 2025, and December 31, 2024, respectively. See Note 11 of Notes to Consolidated Financial Statements in our 2024 Form 10-K for additional details about our Default to Claim Rate assumptions.

Current wording

We develop our Default to Claim Rate estimates based primarily on models that use a variety of loan characteristics to determine the likelihood that a default will reach claim status. Our aggregate weighted average net Default to Claim Rate assumption for our primary loans used in estimating our reserve for losses, which is net of estimated Claim Denials and Rescissions, was 25% and 23% as of June 30, 2025, and December 31, 2024, respectively. See Note 11 of Notes to Consolidated Financial Statements in our 2024 Form 10-K for additional details about our Default to Claim Rate assumptions.

Previous wording

Our All Other results include income (losses) from investments held at Radian Group and general corporate operating expenses not attributable or allocated to our reportable segment. All Other also includes the financial results of our immaterial operating segments, comprising our Mortgage Conduit, Title, Real Estate Services and Real Estate Technology businesses.

Current wording

Our All Other results include income (losses) from investments held at Radian Group and general corporate operating expenses not attributable or allocated to our reportable segment. All Other also includes the financial results of our immaterial operating segments, comprising our Mortgage Conduit, Title, Real Estate Services and Real Estate Technology businesses. Our All Other results may be subject to volatility from period to period as a result of mark-to-market changes in the value of mortgage assets held in our Mortgage Conduit business or seasonality and trends primarily impacting Title and Real Estate Services volumes, among other factors.

Previous wording

Capital’s purchases and sales of, as well as principal payments received from, residential mortgage loans held for sale, which can fluctuate from period to period. The increase in cash provided by operating activities in the three months ended March 31, 2025, as compared to the same period in 2024, is primarily due to a decrease in cash paid for operating expenses as a result of the Company’s ongoing expense reduction initiatives, which was partially offset by increases in net purchases of residential mortgage loans held for sale, which increased from $114 million in the first quarter of 2024 to $128 million for the same period in 2025.

Current wording

Operating Activities. Our most significant source of operating cash flows is from premiums received from our mortgage insurance policies, while our most significant uses of operating cash flows have typically been for our operating expenses, taxes and claims paid on our mortgage insurance policies. In addition, our operating activities also include Radian Mortgage Capital’s purchases and sales of, as well as principal payments received from, residential mortgage loans held for sale, which can fluctuate from period to period. The increase in cash used in operating activities in the six months ended June 30, 2025, as compared to the same period in 2024, is primarily due to increases in net purchases of residential mortgage loans held for sale, which increased from $428 million in the first half of 2024 to $949 million for the same period in 2025.

Previous wording

Investing Activities. Net cash provided by investing activities increased for the three months ended March 31, 2025, as compared to cash used in investing activities in the same period in 2024. The increase was primarily from sales and redemptions, net of purchases, of fixed-maturities available for sale, which helped to fund certain of our financing activities described below.

Current wording

Investing Activities. Net cash provided by investing activities increased for the six months ended June 30, 2025, as compared to cash used in investing activities in the same period in 2024. The increase was primarily from: (i) principal payments on securitized residential mortgage loans held for investment and (ii) a decrease in purchases, net of sales and redemptions, of fixed-maturities available for sale and short-term investments, which helped to fund certain of our financing activities described below.

Previous wording

Financing Activities. For the three months ended March 31, 2025, our primary financing activities impacting cash included: (i) repurchases of our common stock and (ii) payment of dividends. The net use of those financing activities was partially offset by proceeds from the issuance of securitized nonrecourse debt, net of amounts used to pay down a portion of our secured borrowings related to funding from mortgage loan financing facilities. See Notes 12 and 14 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information regarding our borrowings and share repurchases, respectively.

Current wording

Financing Activities. For the six months ended June 30, 2025, our primary use of cash for financing activities included: (i) repurchases of our common stock and (ii) payment of dividends. The net use of cash for those financing activities was more than offset by: (i) the net proceeds from the issuance of securitized nonrecourse debt and (ii) the net increase in our secured borrowings related to funding from mortgage loan financing facilities. See Notes 12 and 14 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information regarding our borrowings and share repurchases, respectively.

Previous wording

Radian Group serves as the holding company for our operating subsidiaries and does not have any operations of its own. At March 31, 2025, Radian Group had available, either directly or through unregulated subsidiaries, unrestricted cash and liquid investments of $834 million. Total liquidity was $1.1 billion as of March 31, 2025, and includes our $275 million unsecured revolving credit facility.

Current wording

Radian Group serves as the holding company for our operating subsidiaries and does not have any operations of its own. At June 30, 2025, Radian Group had available, either directly or through unregulated subsidiaries, unrestricted cash and liquid investments of $784 million. Total liquidity was $1.1 billion as of June 30, 2025, and includes our $275 million unsecured revolving credit facility.

Previous wording

During the three months ended March 31, 2025, Radian Group’s available liquidity decreased by $51 million, due to the payments for dividends and share repurchases, as described below, partially offset by a $200 million return of capital received from Radian Guaranty. See Note 16 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information on this distribution.

Current wording

During the six months ended June 30, 2025, Radian Group’s available liquidity decreased by $101 million, primarily due to $506 million paid for dividends and share repurchases, as described below, partially offset by $400 million received from Radian Guaranty, consisting of a $200 million return of capital and a $200 million ordinary dividend. See Note 16 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information on these distributions.

Previous wording

Radian Group has in place a $275 million unsecured revolving credit facility with a syndicate of bank lenders. The revolving credit facility matures in December 2026, although under certain conditions Radian Group may be required to offer to repay any outstanding amounts and terminate lender commitments earlier than the maturity date. Subject to certain limitations, borrowings under the credit facility may be used for working capital and general corporate purposes, including, without limitation, capital contributions to our insurance and other subsidiaries as well as growth initiatives. At March 31, 2025, the full $275 million remained undrawn and available under the facility. See Note 12 of Notes to Consolidated Financial Statements in our 2024 Form 10-K for additional information on the unsecured revolving credit facility.

Current wording

Radian Group has in place a $275 million unsecured revolving credit facility with a syndicate of bank lenders. The revolving credit facility matures in December 2026, although under certain conditions Radian Group may be required to offer to repay any outstanding amounts and terminate lender commitments earlier than the maturity date. Subject to certain limitations, borrowings under the credit facility may be used for working capital and general corporate purposes, including, without limitation, capital contributions to our insurance and other subsidiaries as well as growth initiatives. The facility provides us with additional flexibility for short-term cash management and, during the second quarter of 2025, we borrowed and repaid in full $50 million under this facility in support of our capital return opportunities. At June 30, 2025, the full $275 million was available under the facility. See Note 12 of Notes to Consolidated Financial Statements in our 2024 Form 10-K for additional information on the unsecured revolving credit facility.

Previous wording

In connection with our Mortgage Conduit business, Radian Mortgage Capital has entered into the Master Repurchase Agreements. As of March 31, 2025, Radian Group has entered into three separate Parent Guarantees to guaranty the obligations under the Master Repurchase Agreements. See Note 12 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information. In addition to financing the acquisition of mortgage loan assets under the Master Repurchase Agreements, Radian Mortgage Capital may fund such purchases directly using capital contributed from Radian Group.

Current wording

In connection with our Mortgage Conduit business, Radian Mortgage Capital has entered into the Master Repurchase Agreements to finance the acquisition of residential mortgage loans and related mortgage loan assets. In the ordinary course of its business, Radian Mortgage Capital expects to renew the Master Repurchase Agreements on or prior to expiration and/or to enter into new agreements to finance the acquisition of residential mortgage loans and related mortgage loan assets. As of June 30, 2025, Radian Group has entered into four separate Parent Guarantees to guaranty the obligations under the Master Repurchase Agreements. See Note 12 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information. In addition to financing the acquisition of mortgage loan assets under the Master Repurchase Agreements, Radian Mortgage Capital may fund such purchases directly using capital contributed from Radian Group.

Previous wording

We expect Radian Group’s principal liquidity demands for the next 12 months to be: (i) the payment of corporate expenses, including taxes; (ii) interest payments on our outstanding debt obligations; (iii) the payment of quarterly dividends on our common stock, which are currently $0.255 per share, and which remain subject to approval by our board of directors and our ongoing assessment of our financial condition and potential needs related to the execution and implementation of our business plans and strategies; (iv) the continued repurchases of shares of our common stock pursuant to share repurchase authorizations, as described below; and (v) investments to support our business strategy, including capital contributions to our subsidiaries.

Current wording

We expect Radian Group’s principal liquidity demands for the next 12 months to be: (i) the payment of corporate expenses, including taxes; (ii) interest payments on our outstanding debt obligations; (iii) the payment of quarterly dividends on our common stock, which are currently $0.255 per share, and which remain subject to approval by our board of directors and our ongoing assessment of our financial condition and potential needs related to the execution and implementation of our business plans and strategies; (iv) potential repurchases of shares of our common stock pursuant to share repurchase authorizations, as described below; and (v) investments to support our business strategy, including investments to expand and diversify our business and revenue streams and capital contributions to our subsidiaries.

Previous wording

Share Repurchases. During the three months ended March 31, 2025, the Company repurchased 6.5 million shares of Radian Group common stock under programs authorized by Radian Group’s board of directors, at a total cost of $207 million, including commissions. See Note 14 of Notes to Unaudited Condensed Consolidated Financial Statements for additional details on our share repurchase programs.

Current wording

Share Repurchases. During the six months ended June 30, 2025, the Company repurchased 13.4 million shares of Radian Group common stock under programs authorized by Radian Group’s board of directors, at a total cost of $430 million, including commissions. See Note 14 of Notes to Unaudited Condensed Consolidated Financial Statements for additional details on our share repurchase programs.

Previous wording

Dividends and Dividend Equivalents. In February 2025, Radian Group’s board of directors authorized an increase to the Company’s quarterly dividend from $0.245 to $0.255 per share. Based on our outstanding shares of common stock and our current dividend level, we would require approximately $144 million in aggregate to pay dividends for the next 12 months, plus an incremental amount for dividend equivalents that will fluctuate based on final shares vested under our performance-based RSU programs. So long as no default or event of default exists under our revolving credit facility or the Parent Guarantees, Radian Group is not subject to any legal or contractual limitations on its ability to pay dividends except those generally applicable to corporations that are incorporated in Delaware. See Note 12 of Notes to Unaudited Condensed Consolidated Financial Statements for additional details. The declaration, level and payment of future quarterly dividends remains subject to the board of directors’ discretion and determination.

Current wording

Dividends and Dividend Equivalents. In February 2025, Radian Group’s board of directors authorized an increase to the Company’s quarterly dividend from $0.245 to $0.255 per share. Based on our outstanding shares of common stock and our current dividend level, we would require approximately $138 million in aggregate to pay dividends for the next 12 months, plus an incremental amount for dividend equivalents that will fluctuate based on final shares vested under our performance-based RSU programs. So long as no default or event of default exists under our revolving credit facility or the Parent Guarantees, Radian Group is not subject to any legal or contractual limitations on its ability to pay dividends except those generally applicable to corporations that are incorporated in Delaware. See Note 12 of Notes to Unaudited Condensed Consolidated Financial Statements for additional details. The declaration, level and payment of future quarterly dividends remains subject to the board of directors’ discretion and determination.

Previous wording

Corporate Expenses and Interest Expense. Radian Group has expense-sharing arrangements in place with its principal operating subsidiaries that require those subsidiaries to pay their allocated share of certain holding-company-level expenses, including interest payments on Radian Group’s outstanding debt obligations. Corporate expenses and interest expense on Radian Group’s debt obligations allocated under these arrangements during the three months ended March 31, 2025, of $39 million and $16 million, respectively, were substantially all reimbursed by its subsidiaries. We expect substantially all of our holding company expenses to continue to be reimbursed by our subsidiaries under our expense-sharing arrangements. The expense-sharing arrangements, as amended, between Radian Group and its mortgage insurance subsidiaries have been approved by the Pennsylvania Insurance Department, but such approval may be modified or revoked at any time.

Current wording

Corporate Expenses and Interest Expense. Radian Group has expense-sharing arrangements in place with its principal operating subsidiaries that require those subsidiaries to pay their allocated share of certain holding-company-level expenses, including interest payments on Radian Group’s outstanding debt obligations. Corporate expenses and interest expense on Radian Group’s debt obligations allocated under these arrangements during the six months ended June 30, 2025, of $86 million and $33 million, respectively, were substantially all reimbursed by its subsidiaries. We expect substantially all of our holding company expenses to continue to be reimbursed by our subsidiaries under our expense-sharing arrangements. The expense-sharing arrangements, as amended, between Radian Group and its mortgage insurance subsidiaries have been approved by the Pennsylvania Insurance Department, but such approval may be modified or revoked at any time.

Previous wording

Taxes. Pursuant to our tax-sharing agreements, our operating subsidiaries pay Radian Group an amount equal to any federal income tax the subsidiary would have paid on a standalone basis if they were not part of our consolidated tax return. As a result, from time to time, under the provisions of our tax-sharing agreements, Radian Group may pay to or receive from its operating subsidiaries amounts that differ from Radian Group’s consolidated federal tax payment obligation. There were no tax-sharing agreement payments received by Radian Group from its subsidiaries during the three months ended March 31, 2025.

Current wording

Taxes. Pursuant to our tax-sharing agreements, our operating subsidiaries pay Radian Group an amount equal to any federal income tax the subsidiary would have paid on a standalone basis if they were not part of our consolidated tax return. As a result, from time to time, under the provisions of our tax-sharing agreements, Radian Group may pay to or receive from its operating subsidiaries amounts that differ from Radian Group’s consolidated federal tax payment obligation. There were $10 million of tax-sharing agreement payments received by Radian Group from its subsidiaries during the six months ended June 30, 2025.

Previous wording

Stockholders’ equity decreased by $37 million from December 31, 2024, to March 31, 2025. The net decrease in stockholders’ equity for the three months ended March 31, 2025, resulted primarily from: (i) share repurchases of $207 million, excluding related excise taxes due and (ii) dividend and dividend equivalents of $38 million. These were partially offset by our net income of $145 million and a net decrease in unrealized losses on investment securities of $55 million as a result of decreases in market interest rates during the period. As of March 31, 2025, we did not expect to realize a loss for our investments in an unrealized loss position given our intent and ability to hold these investment securities until recovery of their amortized cost basis.

Current wording

Stockholders’ equity decreased by $131 million from December 31, 2024, to June 30, 2025. The net decrease in stockholders’ equity for the six months ended June 30, 2025, resulted primarily from: (i) share repurchases of $430 million, excluding related excise taxes due and (ii) dividend and dividend equivalents of $75 million. These were partially offset by our net income of $286 million and a net decrease in unrealized losses on investment securities of $77 million as a result of decreases in market interest rates during the period. As of June 30, 2025, we did not expect to realize a loss for our investments in an unrealized loss position given our intent and ability to hold these investment securities until recovery of their amortized cost basis.

Previous wording

The increase in book value per share from $31.33 at December 31, 2024, to $32.48 at March 31, 2025, is primarily due to: (i) an increase of $0.98 per share attributable to our net income for the three months ended March 31, 2025, and (ii) an increase of $0.38 per share due to a net decrease in unrealized losses in our available for sale securities, recorded in accumulated other comprehensive income. These increases were partially offset primarily by a decrease of $0.26 per share attributable to dividends and dividend equivalents.

Current wording

The increase in book value per share from $31.33 at December 31, 2024, to $33.18 at June 30, 2025, is primarily due to: (i) an increase of $1.94 per share attributable to our net income for the six months ended June 30, 2025, and (ii) an increase of $0.52 per share due to a net decrease in unrealized losses in our available for sale securities, recorded in accumulated other comprehensive income for the six months ended June 30, 2025. These increases were partially offset primarily by a decrease of $0.51 per share attributable to dividends and dividend equivalents.

Previous wording

Historically, one of the primary demands for liquidity in our Mortgage Insurance business is the payment of claims, net of reinsurance, including from commutations and settlements. See Note 11 of Notes to Unaudited Condensed Consolidated Financial Statements for information on our mortgage insurance reserve for losses and LAE, which represents our best estimate for the costs of settling future claims on currently defaulted mortgage loans.

Current wording

Historically, one of the primary demands for liquidity in our Mortgage Insurance business is the payment of claims, net of reinsurance, including from commutations and settlements. See Note 11 of Notes to Unaudited Condensed Consolidated